Brinker International (EAT) investor relations material

Executive summary

• Achieved fifth consecutive quarter of double-digit same store sales growth at Chili's, with Q4 comps up 23.7% and traffic up 16.3% year-over-year, outperforming the casual dining industry.

• Q4 company sales rose to $1.462B, up 21% year-over-year, with Chili's leading at +24% sales and +16% traffic growth.

• Operating income margin improved to 9.8% from 6.1% year-over-year, driven by higher sales and operational improvements.

• Significant operational improvements, menu simplification, and investments in labor, marketing, and technology have driven sustained growth and improved guest experience.

• Maggiano's comps declined slightly (-0.4%), with leadership changes and a renewed focus on core value and guest experience to drive turnaround.

Financial highlights

• Q4 total revenues: $1.462B; consolidated comp sales: +21.3% year-over-year.

• Adjusted diluted EPS for Q4: $2.49, up from $1.61 last year; net income per diluted share: $2.30 (GAAP).

• Restaurant operating margin for Q4: 17.8%, up from 15.2% last year.

• Adjusted EBITDA for Q4: ~$212M, a 50% increase from prior year.

• Capital expenditures for Q4: ~$80M, focused on kitchen equipment and maintenance.

Outlook and guidance

• Fiscal 2026 revenue guidance: $5.6B–$5.7B; adjusted diluted EPS: $9.9–$10.5; capex: $270M–$290M.

• Expect strongest same store sales growth at Chili's in Q1, with positive sales and traffic each quarter despite tougher comparisons.

• Margin expansion expected at 30–40 basis points, with continued investments in food, labor, and technology.

• Focus on ramping up reimage programs and new unit growth, aiming for positive net unit growth in fiscal 2027.